68 CIRCULAR 249, U. S. DEPARTMENT OF AGRICULTURE 
the extreme southern end of the belt open first and have closed by the 
time markets open in the northern end of the belt. Nevertheless, 
during the major portion of the marketing season from 50 to 58 markets 
are in operation simultaneously in the flue-cured districts alone, with 
from 1 to 5 sets of buyers on each. As arule the larger buying inter- 
ests are represented in each such set of buyers. On each market, also, 
they have a bookkeeper and a stockman to handle the accounts and 
take charge of the tobacco. Each company has its circuit riders, 
scattered throughout the territory, who supervise the buyers. These 
items of expense together with the capital and operating costs of a 
multitude of auction warehouses undoubtedly comprise an impressive 
total overhead expense in the marketing of tobacco. 
Statistics for an accurate analysis of buying costs under the auction 
marketing system are not available, but the conclusion that the costs 
are relatively high seems justified. The large number of small mar- 
kets, which during much of the season operate for only a portion of 
the day, gives weight to this conclusion. Under such conditions the 
salaries and expenses of buyers represent a mounting bill of expense 
that may be disproportionate to the volume of tobacco purchased. 
This leads to the consideration of another aspect of the auction 
market. To reduce buying expenses it is a common practice for 
companies to place buying orders. This is more especially true on the 
smaller markets. Thus acompany, instead of incurring the expense 
of maintaining its own buyer on a certain market, places a buying 
order with a leaf dealer who has a buyer at that market. This buyer 
bids not only on behalf of his own employer but for possibly half a 
dozen other companies. 
Were it not for multiple buying orders it is probable that many of 
the smaller markets would cease to operate and the existing trend 
toward elimination of smal] markets would become more pronounced. 
Viewed alone, however, multiple buying may become an abuse which 
is hurtful to the interests of the growers by reason of the fact that 
competition in buying is diminished. 
TOBACCO INSPECTION AND MARKET NEWS 
As discussed under Rapidity of Sales, p. 66, the conditions under 
which tobacco is sold at auction result in many lots being sold at less 
than their true value as judged by current grade prices. Often the 
grower is able to determine this for himself and reject the sale. Other 
instances occur in which the erower is mistaken in his belief that the 
price received is too low. In the majority of instances where tobacco 
is undersold, the grower is unable to determine the fact and the sale 
goes unchallenged. This difficulty arises from the technical con- 
siderations that enter into the judgment of the quality of tobacco, 
and the expert knowledge of tobacco required. 
In recognition of this inherent weakness in the tobacco-auction 
marketing system, the Congress enacted the Tobacco Inspection Act, 
approved August 23, 1935. This act provides the means by which 
auction markets may be designated by the Secretary of Agriculture 
for mandatory inspection service. The service thus provided con- 
sists, first, of an inspection of each lot of tobacco on the warehouse 
floor to determine its grade according to United States standards, 
(fig.33) and second, the distribution among the owners of the tobacco 
